Water & Energy Reliability

Keeping essential utilities and process inputs stable and reliable

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Reliable access to water and energy is fundamental to most manufacturing processes, from cooling and cleaning to powering machinery. Climate and nature risks can disrupt supply through infrastructure stress, resulting in scarcity, price volatility, and interruptions. At the same time, tighter regulations and competition for resources may constrain access further.

These pressures can force production slowdowns or shutdowns, increase input costs and require investment in efficiency measures, alternative sources, or redesign of processes, affecting profitability and continuity.

Vulnerabilities

What are the climate risks for water and energy reliability?

The climate and nature pressures that can make energy and water less available, more expensive, or less safe to use.

 Water and energy systems are increasingly affected by climate and nature-related hazards such as droughts, heatwaves, storms, flooding, and ecosystem degradation. Drought and changing rainfall patterns can reduce water availability, while extreme heat can increase cooling demand and strain electricity grids. Storms and floods can damage energy infrastructure and disrupt supply networks.

These hazards heighten the risk of interruptions and volatility in essential utilities that manufacturing operations rely on.

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How exposed are businesses to water and energy disruption?

How exposed manufacturing & operations are to water stress, flooding, poor water quality, or energy reliability.

Water and energy risks depend on their geographic context, sourcing arrangements and infrastructure connections. Facilities located in water-stressed regions or areas with fragile or ageing energy infrastructure face higher exposure. Dependence on single water sources, centralised grids or regions vulnerable to climate extremes further increases risk.  

Limited access to alternative suppliers or backup systems can leave operations particularly exposed to disruptions in critical utilities.

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How sensitive are businesses to water and energy disruption?

How much manufacturing & operations rely on water and energy being available, affordable, and at the right time.

Highly water-intensive activities (e.g. cooling, processing, cleaning) and energy-intensive operations with continuous production requirements are especially vulnerable to even short interruptions. Processes with low tolerance for fluctuations in temperature, pressure or power quality are also more sensitive.
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What are the knock-on effects of water and energy disruption?

How water stress and energy reliability can create wider knock-on effects for operations, suppliers, and communities.

Interruptions or shortages may force production slowdowns or shutdowns, reducing output and delaying delivery schedules. Increased scarcity and volatility can drive up input costs, squeezing margins. Businesses may also face higher capital and operating expenditure to secure alternative supply, invest in efficiency or retrofit processes. Over time, these pressures can affect competitiveness, regulatory compliance, and long-term operational resilience.
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Solutions

How can businesses keep water & energy reliability secure?

Businesses are responding by investing in advanced water and energy efficiency measures, securing alternative utility sources, installing backup power and water systems, redesigning resource-intensive production processes, and retrofitting equipment to maintain continuous operations during grid stress and supply interruptions.

Examples of business adaptations and responses

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International

L’Oréal

Recycling water onsite through Waterloop factories
L’Oréal’s Waterloop factories reduce dependence on freshwater by treating and reusing industrial water onsite for cleaning, cooling and other manufacturing processes.
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Danone South Africa

Using a microgrid to protect dairy manufacturing from power disruption 
Danone’s Boksburg dairy manufacturing plant is using a microgrid and combined heat and power system to improve energy reliability in a context of frequent grid disruption.
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South Africa